Thu Nov 22nd, 2007 at 01:35:41 PM EST
Today: I know nothing edition
I have been trying to get an answer in the comments and everybody seem as puzzled as me .. (or well. they think I am stupid so why bother)...So I will launch a diary that I hope it will be promoted by the powers to be and answered by the experts in the field
I would like an answer to one simple question...
If everybody predicts the dollar is going to fall heavily and probably more than 4% given the hard-core trade imbalances, the Wild_Eye Coyote phenomena and the PRESENT TREND... why .. oh why is people buying US securities at 4% interest rates????
Why oh why the basic rule that people do not want to lose money does not seem to apply here (no mention earning more money in europe)... who is willing to lose money on purpose and why?
central banks of China and Japan (still buying at the same rate??).. one of the comments said they are not buying as much as before .. and still
Oil monarchies for favors...
Conspiracy theories (false companies arranged by the government to look like priv. companies are buying the stuff.... ala CIA movie)
Because it may turn out that even if China sells all the US securities there would be someone ready to buy them all...
HEAD EXPLODES AND I know nothing...
Please.. keep it simple..
[editor's note, by Migeru]
Socratic Economics is an occasional series of questions posed in a Socratic effort to understand economics. Previous entries: